The cost structure of an LBS isn't the same as Wal-Mart. You can't compare pricing equitably because the latter has a disproportionate influence over their suppliers. Also physical hard goods aren't the same as electronics. Their material inputs are always increasing in cost. Compare to prices these things sold for 40 years ago. A $50 kids bike in 1980 should by rights cost $160 today and they were never even that cheap back then. That Wal-Mart can sell a bike shaped object for $50 without any apparent concern for inflationary pressure is more indicative of significant compromises on build quality. The bicycle industry has an issue with ridiculous gouging on the mid/high end but the bottom end is reasonable if you don't set unrealistic expectations.